According to reports, Asia will need to earmark US$10bn of investment funds in the next few years to give solar power generation a competing chance with conventional energy sources, according to the Asian Development Bank (ADB).
Home to about two-thirds of the global population, Asia requires around 3GW of extra solar energy capacity before 2014. In the year to date, the region’s capacity has already doubled to 1GW as the ADB has assisted in the addition of 500MW.
The bank plans to launch its US$2.25bn Asia Accelerated Solar Energy Development Fund, targeting development of the renewable energy source in a wide range of countries, including China, India, Pakistan, Thailand and Uzbekistan. The fund is expected to enable the region to add 1GW of capacity next year and a further 1.5GW in 2013.
“By providing an enabling environment for commercial lending and private investment in the solar energy market, we hope to encourage its rapid growth and bring solar energy nearer to grid parity – making solar energy competitive in price to conventional sources,” ADB President Haruhiko Kuroda said.
“The total cost of this 3,000 MW is about $10 billion, of which we are planning to commit $2.25 billion,” said S Chander, principal director at ADB’s Office of Information Systems and Technology.